Football might not have come home after all, but the World Cup added a kick to recent online retail sales, according to a new report.
The latest IMRG Capgemini e-Retail Sales Index reveals a 16.9 percent year-on-year (YoY) growth of retail sales in June. Both multichannel and online only retailers performed well (+14.8 percent and +18.7 percent respectively), and the report’s compilers believe both the World Cup and the recent heatwave played a part.
Unsurprisingly, the largest sector increase was seen in Garden, with a +49.9 percent YoY growth as the nation prepared for World Cup barbecues and basked in the hot weather. This was followed by Clothing, with the sunny weather inspiring a YoY growth of +19.3 percent, including a +23.9 percent growth for accessories and +22.7 percent growth for footwear.
Health & Beauty and Gifts sales were slightly more subdued, with +9.9 percent and +10.5 percent YoY growth respectively.
Bhavesh Unadkat, principal consultant in retail customer engagement, Capgemini, said:
June has seen continued buoyant sales online, strongly influenced by fashion and seasonal items. This has boosted non-essential spend while customers make the most of the buzz created by the good weather and the World Cup. We might question what the longer term effect is as Barclaycard report that one-in-three Brits have spent more than normal so far this summer.
This could result in a slowdown as customers align the potential overspend so far this summer in the later months of the year, supported by four-in-ten saying they will hold off purchasing big ticket items. Electrical and Home sectors have the lowest June YoY growth in the last 5 years, a reminder of caution during political uncertainty and upcoming interest rate increases”